Australian inflation data exceeded forecasts, lifting RBA tightening expectations and driving the AUD 0.13% higher against the JPY.
The Australian Dollar rose 0.13% to 114.30 against the Japanese Yen in European trading, fueled by heightened bets on Reserve Bank of Australia rate hikes. The move follows July’s Consumer Price Index data, which showed headline inflation at 3.5% year-over-year, above the 3.3% consensus.
Underlying inflation also surprised, with trimmed mean CPI at 3.6%, versus 3.5% expected. The stronger-than-anticipated print has sharpened market focus on potential RBA tightening, contrasting with broader global easing trends.
Analysts noted the data’s immediate impact on rate expectations, though no official RBA commentary has been released. The AUD outperformed peers, including the New Zealand Dollar, in today’s session.